Billionaire Kirk Kerkorian is still on track to increase his stake in Ford Motor Co. to 5.5 percent, a new report finds. Kerkorian’s investment company, Tracinda Corp., was looking to purchase 20 million addition Ford shares at $8.50 a pop, but with the stock closing at $6.12 per share, the company drew offers for more than 1 billion shares.
Despite the additional offers, Tracinda still plans to purchase 20 million shares.
However, the fact that so many shareholders are willing to jump ship is not good news for the Blue Oval. “Obviously the premium is a motivation, but the motivation is that you don’t see the stock going higher than what the tender offer was,” Argus Research analyst Kevin Tynan told Automotive News. “If shareholders believed that $8.50 was just the starting point and it would go higher from there, you would not see that kind of over-subscription to the offer.”
Ford’s stock has been on a steady free-fall ever since the Michigan-based automaker announced that it would not reach its turnaround goal in 2009.
06/10, 7:17 PM
posted by:
howsmydriving
I think that Kerkorian has a lot of verve. I mean nerve.
06/10, 7:33 PM
posted by:
johnnycanuck
I think Kerkorian has a lot of loose skin where his nutsack used to be, which is surprising since it takes a lot of balls to want Ford shares these days.
06/10, 7:45 PM
posted by:
1c3d0g
I don’t understand this old man. What the hell does he want with Ford? Why does he want it so badly? He doesn’t have too many years to live considering his age…something definitely smells fishy here, IMO.
06/10, 8:06 PM
posted by:
F451
Ford might just be the real comeback kid of the Big 2.5 automakers. GM is struggling under its own weight—not good. Chrysler is at the hands of crooks and imbeciles: Cyberus, and Nardelli.
06/10, 9:53 PM
posted by:
NoNameDenton1
You would think with all that money he would retire, but I guess do these sorts of things is in his blood (what little is still being pumped from his heart).
06/10, 11:19 PM
posted by:
Impulsive
If the “buy them when they’re ugly” mantra holds true, maybe Kerkorian is a wise, old owl. He’s far more connected than any of us … he knows something.
06/11, 8:25 AM
posted by:
Fletch
He’s looking for a quick buck. All Kerkorian will do is get in the way of Ford’s turnaround. Management and workforce should tell him to get lost.
06/11, 9:12 AM
posted by:
HemiRoadRunner
Maybe his pacemaker’s batteries will die.
06/11, 9:30 AM
posted by:
1c3d0g
ROFL!
06/11, 9:49 AM
posted by:
xyunya
F451, you think Ford is in good hands? At least Cerberus put its money where the mouth is. I am not fan of Nardelli, but who knows, so far their alliances sounds reasonable. GM is controlled by Wagoner and Lutz. If Wagoner has education on his side and political survival instinct, which is a detriment to the company, Lutz is just an old town clown. His only distinction was tossing rocks into Iaccoca path while Iaccoca was resurrecting Chrysler in the 80’s.
HemiRetard, you graduated to FullBlownRetard with you attempt of morbid humor.